Order Types

Trailing Stop Order - Sell

A Trailing Stop Order can also be used to track a share price and trigger automatically the shares to sell, after reaching a peak in the share price

Let's look again at MM02. On 15th December you bought 1,000 shares at 78p. By 27 January, the share price had risen to 86p. You are tempted to sell but you don't want to miss out on any further gains. You therefore place a Trailing Stop Order to sell with a minimum trailing value of 5p.

To ensure you get the most value for your shares you decide you want to limit the price at which the order will be dealt and set a maximum trailing value of 10p. Setting a limit price is optional and creates a dynamic dealing band within which the shares will be dealt.

The information contained in this case study is believed to be correct but cannot be guaranteed. Investors should be aware that the value of investments and the income derived from them can fall as well as rise, and past performance is not necessarily a guide to future performance. The information contained in this case study does not constitute a personal recommendation to deal in any particular shares. You should consult a personal advisor to discuss the suitability to your personal circumstances and investment objectives.